Choosing a payment gateway is one of the bigger decisions you will make when setting up a WooCommerce shop.
Your payment gateway is the service that securely processes card payments and transfers the money to your business account. It affects:
- What payment methods you can offer
- How much you pay for each sale
- How quickly you receive your money
- How refunds and disputes are handled
- What your checkout looks like
- How easy the system is to manage
There is no single gateway that suits every shop. The right choice depends on what you sell, where your customers are based and how they prefer to pay.
This guide compares some of the most popular WooCommerce payment options for UK businesses, including their rough processing costs.
WooCommerce payment gateway fees at a glance
| Payment gateway | Typical UK online fee | Monthly gateway fee | Best suited to |
|---|---|---|---|
| WooPayments | 1.5% + 25p | None | Straightforward WooCommerce stores |
| Stripe | 1.5% + 20p | None | Flexible online shops and subscriptions |
| PayPal card payment | 1.2% + 30p for qualifying UK card-funded guest payments | None for standard checkout | Customers paying by card without a PayPal account |
| PayPal account payment | 2.9% + 30p for other domestic commercial transactions | None for standard checkout | Customers who want to pay through PayPal. Account-specific pricing may apply |
| Square | 1.4% + 25p | None for basic payment processing | Businesses selling online and in person |
| Revolut | 1% + 20p for UK consumer Visa and Mastercard payments | Business account costs may apply | Revolut Business users and international sellers |
| Klarna through WooPayments or Stripe | Around 4.99% + 35p | Usually none | Shops selling higher-priced products |
These are headline prices for common UK transactions. International cards, business cards, premium cards, currency conversion, disputes and optional services can cost more.
Payment providers may also give some businesses account-specific or custom pricing. Always check the fees shown inside your own account before making a final comparison.
1. WooPayments
WooPayments is WooCommerce’s own payment service. It lets you accept card payments without setting up a separate Stripe account.
Payments, refunds and disputes can all be managed from your WordPress dashboard. Customers can also use options such as Apple Pay and Google Pay where available.
Rough WooPayments costs
For a UK business, the standard online card fee is currently:
- 1.5% + 25p for UK card payments
- An extra 2% for international payments
- An extra 2% when currency conversion is needed
- £15 for a payment dispute
There are no setup fees or monthly fees for standard online payments. WooCommerce says transaction fees are not returned when you refund a customer.
On a £50 UK card payment, the basic processing fee would be about £1.
Pros of WooPayments
- Built specifically for WooCommerce
- Payments can be managed inside WordPress
- No separate payment dashboard needed for everyday tasks
- No monthly payment fee
- Supports saved cards and recurring payments
- Can offer Apple Pay and Google Pay
- Makes refunds easier to manage from the order screen
Cons of WooPayments
- Your payment account is closely tied to WooCommerce
- International cards and currency conversion can increase the cost
- Transaction fees are normally retained when you issue a refund
- Account approval and verification are still required
- It may offer less flexibility than using Stripe directly
Who is WooPayments best for?
WooPayments is a good starting point for a small WooCommerce shop that wants everything in one place.
It is particularly useful if you do not want to move between WordPress and a separate payment dashboard whenever you need to check an order or issue a refund.
2. Stripe
Stripe is one of the best-known online payment processors. It connects to WooCommerce through a free official extension.
It accepts standard debit and credit cards, Apple Pay, Google Pay and several international payment methods. It is also widely used for subscriptions and recurring payments.
Rough Stripe costs
Stripe’s standard UK online pricing currently starts at:
- 1.5% + 20p for standard UK cards
- 2.8% + 20p for premium UK cards
- 2.5% + 20p for cards from the European Economic Area
- 3.15% + 20p for other international cards
- An extra 2% when currency conversion is needed
On a £50 payment made with a standard UK card, the processing fee would be about 95p.
Pros of Stripe
- Well-supported WooCommerce integration
- No setup or standard monthly payment fee
- Customers can pay without leaving your website
- Supports Apple Pay and Google Pay
- Suitable for subscriptions and saved payment methods
- Supports many currencies and local payment options
- Detailed payment and reporting tools
Cons of Stripe
- The dashboard can feel complicated at first
- Fees are higher for premium and international cards
- Currency conversion adds to the cost
- Some extra Stripe services have their own fees
- Your Stripe and WooCommerce settings both need to be configured correctly
Who is Stripe best for?
Stripe is a strong all-round choice for shops that need flexibility.
I often consider it for businesses selling subscriptions, working internationally or planning a more complex shop. It gives you room to add more payment methods later without replacing the whole payment system.
3. PayPal
PayPal remains a familiar payment option for many online shoppers.
It can give customers two different ways to pay:
- By entering their card details without signing in to PayPal
- By signing in and paying through their PayPal account
These transactions can be charged at different rates.
The WooCommerce PayPal Payments extension can offer PayPal account payments, card payments and Pay Later options, depending on your account, setup and eligibility.
Rough PayPal costs
PayPal’s published UK rates vary by transaction type.
For standard domestic commercial payments, its current published rates include:
- 1.2% + 30p for a qualifying card-funded payment from a customer without a PayPal account
- 2.9% + 30p for “all other commercial transactions”, which will generally include a customer paying through their PayPal account
- 1.2% + 30p for eligible Advanced Credit and Debit Card Payments using Visa, Mastercard and certain other supported card types
- 3.5% for American Express payments processed through Advanced Credit and Debit Card Payments
- An extra 1.29% for applicable international transactions from the European Economic Area
- An extra 1.99% for applicable international transactions from many other markets
- 1.4% + 20p for approved domestic charity transactions
PayPal accounts can have different products, agreements and pricing structures. Some clients may also have negotiated or account-specific rates.
This means you should check the fees shown in your own PayPal account rather than assuming every transaction will use the same rate.
On a £50 domestic payment:
- A qualifying guest card payment charged at 1.2% + 30p would cost about 90p
- A PayPal account payment charged at 2.9% + 30p would cost about £1.75
View current PayPal merchant fees
Why the PayPal fees can be confusing
The payment button may say PayPal, but the customer can still pay in different ways.
Someone might use a debit or credit card without creating a PayPal account. Another customer might sign in and pay from their PayPal balance, bank account or a card saved inside PayPal.
From the shop owner’s point of view, these payments can fall into different PayPal transaction types. That affects the processing fee.
The exact fee may also depend on:
- The PayPal product connected to WooCommerce
- Whether the customer signs in to PayPal
- How the payment is funded
- Whether the payment is domestic or international
- The customer’s card type
- Your own PayPal agreement
- Any account-specific pricing
Pros of PayPal
- A very familiar name for customers
- Customers can pay through their PayPal account
- Qualifying customers can pay by card without opening an account
- Some shoppers prefer not to enter card details directly into a website
- Can offer Pay Later options
- No monthly fee for a standard PayPal checkout
- Reduced charity pricing may be available after approval
Cons of PayPal
- The fee structure can be difficult to compare
- PayPal account payments can cost more than standard card payments through some other gateways
- International payments can become expensive
- Customers may be taken through PayPal’s own payment flow
- Account limitations or payment holds can affect access to funds
- The rate can depend on how the customer pays
- Your own account may have different pricing from the headline rates
Who is PayPal best for?
PayPal works well as an additional payment choice rather than the only way to pay.
Offering standard card payments and PayPal gives customers a choice. It can help if your audience already uses and trusts PayPal.
If you plan to accept both guest card payments and PayPal account payments through the PayPal extension, check how each option will be charged on your particular account.
4. Square
Square is well known for card readers and point-of-sale systems, but it can also process WooCommerce payments.
The main benefit is that online and in-person sales can be connected. This can make stock and order management easier for businesses that sell through a website, shop, market stall or event.
Rough Square costs
Square’s current UK online fees include:
- 1.4% + 25p for UK card transactions
- 2.5% + 25p for non-UK card transactions
- 1.75% for card-present payments
- 1.5% for an instant transfer of your available balance
On a £50 online UK card payment, the fee would be about 95p.
Pros of Square
- Useful for businesses selling online and face to face
- Can help keep online and physical stock in step
- No basic monthly payment-processing fee
- Competitive UK online card rate
- Square card readers and till systems are available
- Payments and in-person sales can be viewed in one system
Cons of Square
- Less useful if you only sell online
- Stock syncing needs to be tested carefully
- Some Square software and hardware has an extra cost
- International card payments cost more
- You will have both WooCommerce and Square settings to manage
Who is Square best for?
Square is most relevant to businesses that sell in more than one place.
For example, it may suit a shop that also attends markets or a maker who sells through WooCommerce and takes card payments at events.
5. Revolut
Revolut provides an official WooCommerce payment gateway. It supports card payments, Revolut Pay, Apple Pay and Google Pay.
It can be attractive for businesses already using Revolut Business, especially those accepting or holding several currencies.
Rough Revolut costs
Revolut currently lists the following UK online card fees:
- 1% + 20p for UK Visa and Mastercard consumer cards
- 1.7% + 20p for UK American Express consumer cards
- 2.8% + 20p for non-UK consumer cards and all commercial cards
On a £50 payment made with a UK consumer Visa or Mastercard, the processing fee would be about 70p.
You will need an eligible Revolut Pro or Revolut Business account and a Merchant account. Costs connected to the underlying business account may also apply.
Pros of Revolut
- Low headline rate for standard UK consumer cards
- Official WooCommerce plugin
- Supports Revolut Pay
- Supports Apple Pay and Google Pay
- Useful for businesses working in several currencies
- Can suit businesses already using Revolut Business
- Next-day settlement is available for some payments
Cons of Revolut
- You need an eligible Revolut account and Merchant account
- Commercial and international cards cost considerably more
- It has a smaller WooCommerce user base than Stripe or PayPal
- The official plugin has received mixed user reviews
- Your payment income is tied more closely to the wider Revolut service
Who is Revolut best for?
Revolut is worth comparing if you already use Revolut Business or receive payments in several currencies.
The lower UK consumer card rate looks appealing, but it should not be the only factor. Plugin reliability, support and the types of cards your customers use matter too.
6. Klarna
Klarna is a buy now, pay later service rather than a standard card gateway. It allows eligible customers to spread or delay payments while the merchant receives payment from Klarna, subject to the provider’s terms.
You can offer Klarna through services such as WooPayments or Stripe.
Rough Klarna costs
The current UK price listed through WooPayments and Stripe is around:
- 4.99% + 35p per successful payment
- Around £20 for a lost dispute
On a £50 purchase, the fee would be about £2.85.
Pros of Klarna
- Gives customers more flexibility
- May help with higher-priced purchases
- Customers can spread the cost
- Can be enabled alongside normal card payments
Cons of Klarna
- Processing fees are much higher than standard card fees
- It adds another payment method to manage
- Not every customer or purchase will be eligible
- Buy now, pay later will not suit every business or audience
- Returns and disputes can involve another set of processes
Who is Klarna best for?
Klarna may be useful if you sell higher-priced products and customers often need more flexibility.
For shops selling low-cost items, the higher percentage and fixed fee may take too much from the order.
Which WooCommerce payment gateway is cheapest?
Based on the headline rates for standard UK consumer cards, Revolut currently has the lowest fee in this comparison.
A £50 UK payment would cost roughly:
| Gateway | Approximate fee on a £50 sale | Pricing basis |
|---|---|---|
| Revolut | £0.70 | UK consumer Visa or Mastercard at 1% + 20p |
| PayPal qualifying guest card payment | £0.90 | Qualifying UK card-funded guest payment at 1.2% + 30p |
| Stripe | £0.95 | Standard UK card at 1.5% + 20p |
| Square | £0.95 | UK online card at 1.4% + 25p |
| WooPayments | £1.00 | UK card at 1.5% + 25p |
| PayPal account payment or other commercial transaction | £1.75 | Other domestic commercial transaction at 2.9% + 30p. Account-specific pricing may apply |
| Klarna | £2.85 | Payment at around 4.99% + 35p |
The PayPal figures show why the payment type matters. A qualifying card payment made without a PayPal account may cost less than a payment made through a customer’s PayPal account.
These examples use PayPal’s published standard UK rates. Your PayPal account may have different pricing.
The cheapest gateway on paper is not always the best option.
A slightly lower fee may not help if customers do not recognise the payment option, the checkout is unreliable or the payment method they want is missing.
You should also think about:
- Your average order value
- How many orders you expect
- Where your customers live
- Whether customers use personal or business cards
- Whether customers prefer cards or payment accounts such as PayPal
- Whether you sell online, in person or both
- Whether you need subscriptions
- Whether you accept several currencies
- How refunds affect your costs
- The quality of the plugin and customer support
- Whether your account has custom pricing
Do you need more than one payment gateway?
Sometimes, yes.
A practical setup for a small WooCommerce shop might include:
- Stripe or WooPayments for debit and credit card payments
- PayPal for customers who prefer to use their PayPal account
- Klarna only where spreading the cost makes sense
You may also decide to let PayPal process both card payments and PayPal account payments. If you do this, check the rates and payment options attached to your account.
Adding more options can help customers, but too many choices can clutter the checkout and create more work behind the scenes.
Each gateway adds another account, plugin and set of settings to maintain. I would usually choose one main card processor, then add one or two payment methods that clearly suit the shop’s customers.
Who should create the payment gateway account?
The business owner should create and own the account.
Payment providers need business, identity and bank information as part of their checks. The account also controls your money, refunds, disputes and financial records.
Your web designer can guide you through the process and connect the approved account to WooCommerce, but should not own it on your behalf.
You should keep control of:
- The main account login
- Two-factor authentication
- Bank account details
- Identity checks
- Business verification
- Financial and tax information
- Gateway terms and pricing agreements
This protects both you and your web designer.
Which payment gateway should you choose?
For many small UK WooCommerce shops, Stripe or WooPayments will be the simplest starting point.
Stripe gives you more flexibility and a separate payment dashboard. WooPayments keeps more of the day-to-day management inside WordPress.
PayPal is useful as an additional option because customers recognise it. It can also process card payments, but the fee depends on the type of PayPal transaction and your account setup.
Square makes sense when you sell both online and in person. Revolut is worth exploring if you already use its business services or work across currencies.
Klarna can help with larger purchases, but its higher fees need to be built into your margins.
The best choice is the one that works for your business and feels easy for your customers to use.
Need help setting up WooCommerce payments?
I build and support WooCommerce websites for small businesses, charities and local organisations.
I can help you compare suitable payment options, connect your chosen gateway and test the checkout before your shop goes live. You will create and own the payment account, with guidance from me where needed.
Contact me about your WooCommerce website.
Frequently Asked Questions
Does WooCommerce charge its own transaction fee?
Can customers pay by card through PayPal without having an account?
Is a PayPal card payment charged at the same rate as a PayPal account payment?
Can I change payment gateways later?
Can I pass card processing fees to customers?
Do I need an SSL certificate?
Are payment processing fees refunded when I refund an order?
Pricing note
All prices in this guide are approximate UK fees checked in August 2026.
They exclude any applicable VAT, currency conversion charges, international card charges, disputes, premium services and custom pricing agreements.
PayPal’s published rates vary by transaction type. A qualifying card-funded payment from someone without a PayPal account is currently listed at 1.2% + 30p. All other commercial transactions are listed at 2.9% + 30p.
Clients may have pricing specific to their own PayPal or payment provider account.
Payment providers can change their fees and eligibility rules. Check the provider’s current pricing and your account agreement before making a final decision.